Answer to Question #255970 in Marketing for Lulu

Question

2.4 Identify whether The Sneaker Shack uses intensive, selective or exclusive distribution for their services (1 mark). Provide a motivation for your decision by providing examples relating to The Sneaker Shack. (1 mark). The Sneaker Shack can make use of various options of channel levels: 2.2.1 Identify whether The Sneaker Shack uses a consumer or business marketing channel or both. Provide a specific example to motivate your answer 2.2.2 Identify whether The Sneaker Shack uses a direct or indirect marketing channel . Provide a specific example to motivate your answer (1 mark)

Answer 1

2.4 Identify whether The Sneaker Shack uses intensive, selective or exclusive distribution for their services (1 mark). Provide a motivation for your decision by providing examples relating to The Sneaker Shack. (1 mark).

They use selective distribution for their services. Selective distribution is a strategy where a producer sells its products or services in a few exclusively chosen retail outlets in a specific geographical area. For example, currently the Sneaker Shack has four locations in Johannesburg (including Bryanston, Rosebank and Fourways), one in Cape Town with more being planned in Durban. They also have one location in Claremont that is inside the Virgin Active gym to have a captured market of consumers.

The Sneaker Shack can make use of various options of channel levels: 2.2.1 Identify whether The Sneaker Shack uses a consumer or business marketing channel or both. Provide a specific example to motivate your answer

They use consumer marketing channel. Consumer marketing is selling goods or services to individuals for their personal use and promoting these goods and services through various marketing strategies, including using consumer data for personalized experiences. For example, sneaker shack customers can bring their shoes to Sneaker shack stores or they can book online for the collection after they have been cleaned.

2.2.2 Identify whether The Sneaker Shack uses a direct or indirect marketing channel. Provide a specific example to motivate your answer (1 mark)

They use direct marketing channel. Direct marketing is the process of selling directly to the end buyer without any intermediary. Sneaker shack interacts directly without any intermediary; their customers bring their shoes direct to their stores for cleaning or they can directly book online for pick-up and delivery.